- 03 Dec 2024
- ICICI Securities
HCL TECH ACQUIRED COMMUNICATIONS TECHNOLOGY GROUP ASSETS FROM HEWLETT PACKARD ENTERPRISE
News: HCL Tech informed the stock exchange following its announcement in May 2024, that it has completed acquisition of Communications Technology Group assets from Hewlett Packard Enterprise (HPE). The closure of this deal formally expands HCLTech’s long-standing partnership with HPE, extending its leadership in the telecom services markets and strengthening its engineering services capabilities.
Views: HCLTech had announced its plan to acquire the assets for $225 million in cash consideration. As part of the agreement, HCLTech will absorb around 1,500 engineering specialists and 700 contractors. We believe this acquisition will help the company in expanding its global presence in the CSP market across North America, Latin America, Europe and Asia Pacific, including Japan. Additionally, it will also gain a portfolio of service offerings that includes industry leading IP, solutions and systems integration across Business Support Systems (BSS), network applications, service cloudification and data intelligence.
Impact: Positive